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shtirl [24]
2 years ago
11

Jervis sells $75,000 of its accounts receivable to Northern Bank in order to obtain necessary cash. Northern Bank charges a 5% f

actoring fee. What entry should Jervis make to record the transaction?

Business
1 answer:
Natasha2012 [34]2 years ago
4 0

Answer:

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

Explanation:

Step 1 of 2

Calculate the amount of factoring fee.

Factoring fee = 5% ×Account Receivable

=5%×$75,000

=$3,750

​

Step 2 of 2. Journey record. Image attached.

Debit cash by $71,250, factoring expense by $3,750 and credit account receivable by $75,000.

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Consider the following data on U.S. GDP: Year GDP (Billions of current dollars) (Billions of 2012 dollars) 2014 17,521.7 16,899.
saul85 [17]

Answer:

= 5.18%

2.88%

True

Explanation:

Nominal GDP is GDP calculated using current year prices

Change in nominal GDP from 2017 to 2018 = 20,494.1 /  19,485.4 - 1 = 0.0518 = 5.18%

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation

The percentage change in real GDP from 2014 to 2015 = 17,386.7 / 16,899.8 - 1 = 0.0288 = 2.88%

percentage change in real GDP from 2015 to 2016 = 17,659.2 / 17,386.7 - 1 = 1.57%

The percentage change in real GDP from 2014 to 2015 was higher than the percentage change in real GDP from 2015 to 2016

5 0
2 years ago
hich of the following is not a reason why government agencies subsidize basic research? a. The private market devotes too few re
Oxana [17]

Answer:

 c. The government wants to attract the brightest researchers away from private research firms

Explanation:

Research is one of the activities that generates postive externality.

Positive externality is when the benefits of economic activities to third parties exceeds the costs.

Activities that generates postive are usually underproduced because of the high cost associated with it. In order to encourage production, the government usually grants subsidies.

I hope my answer helps you

4 0
2 years ago
Read 2 more answers
The work breakdown structure can include specifications regarding size, color, weight, or performance parameters, such as speed,
dem82 [27]

Answer: the answer is false

Explanation: All the work contained within the work breakdown structure is to be identified, estimated, scheduled, and budgeted

Work breakdown team includes work to be executed by the project team to accomplish the project objectives and create the required deliverables,it also includes a visual tool for defining and tracking a project deliverable and all the small components needed to create it. breakdown structures should include about three levels of detail.

6 0
2 years ago
The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $31,000 per year fo
Whitepunk [10]

Answer: 6.51%

Explanation:

To get the interest rate at which the deal will be fair

Annual payment per year/ cost × 100

Perpetuity = D/r

476000 = 31000/r

r = 31000÷ 476000

r = 0.06512

r = 0.06512 × 100

r = 6.512%

Where D is the dividend

r is the rate

3 0
2 years ago
Keys Printing plans to issue a $1,000 par value, 20-year noncallable bond with a 7.00% annual coupon, paid semiannually. The com
sveticcg [70]

Answer:

option b) -0.35%

Explanation:

For tax rate = 40%

After after-tax cost of debt = cost of debt × ( 1 - Rate )

= 7% × ( 1 - 0.40 )

= 4.20%

For tax rate = 45%

After after-tax cost of debt = cost of debt × ( 1 - Rate )

= 7% × ( 1 - 0.45 )

= 3.85%

Therefore, the change in cost of debt = 3.85% - 4.20% = -0.35%

Hence,

Correct answer is option b) -0.35%

3 0
2 years ago
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